Asian Markets Track Global Markets Lower

Asian stock markets are trading mostly lower on Thursday, following the broadly negative cues from global markets overnight, led by steep declines for technology stocks, which mirrored their peers on the tech-heavy Nasdaq, after a few big name U.S. tech firms reported disappointing quarterly numbers. Lingering concerns over slowing growth in the world’s second largest economy, China, also kept investors nervous. Asian Markets closed mostly lower on Wednesday.

Traders also remained cautious ahead of the release of key US GDP and inflation data later in the week, which could have a significant impact on the outlook for interest rates.

The Australian market is trading sharply lower on Thursday, adding to the slight losses in the previous session, following the broadly negative cues from global markets overnight. The benchmark S&P/ASX 200 is falling below the 7,900 level, with weakness across most sectors led by materials and technology stocks.

The benchmark S&P/ASX 200 Index is losing 91.40 points or 1.15 percent to 7,872.30, after hitting a low of 7,866.10 earlier. The broader All Ordinaries Index is down 100.80 points or 1.23 percent to 8,104.70. Australian stocks ended slightly lower on Wednesday.

Among major miners, Rio Tinto and BHP Group are edging down 0.1 percent each, while Fortescue Metals is losing almost 3 percent and Mineral Resources is declining almost 2 percent.

Oil stocks are mostly lower. Origin Energy is edging down 0.1 percent and Santos is losing more than 1 percent, while Beach energy is edging up 0.3 percent. Woodside Energy is flat.

In the tech space, Afterpay owner Block is slipping almost 6 percent, Zip is declining more than 4 percent and WiseTech Global is down almost 2 percent, while Xero and Appen are losing more than 2 percent each.

Among the big four banks, Commonwealth Bank and Westpac are losing almost 1 percent each, while National Australia Bank and ANZ Banking are edging down 0.5 percent each.

Among gold miners, Evolution Mining and Gold Road Resources are losing more than 1 percent each, while Northern Star Resources is edging down 0.2 percent and Resolute Mining is declining 1.5 percent. Newmont is gaining almost 2 percent.

In the currency market, the Aussie dollar is trading at $0.655 on Thursday.

Extending the sharp losses in the previous session, the Japanese market is trading sharply lower on Thursday, following the broadly negative cues from global markets overnight. The Nikkei 225 is plunging 2.5 percent to well below the 38,200 level, with strong losses across most sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,165.19, down 989.66 points or 2.53 percent, after hitting a low of 37,959.07 earlier. Japanese shares ended sharply lower on Wednesday.

Market heavyweight SoftBank Group is plunging more than 7 percent and Uniqlo operator Fast Retailing is losing more than 1 percent. Among automakers, Toyota is declining almost 2 percent and Honda is losing almost 1 percent.

In the tech space, Advantest is plunging more than 7 percent, Tokyo Electron is declining 4.5 percent and Screen Holdings is slipping more than 5 percent.

In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are losing more than 2 percent each, while Mitsubishi UFJ Financial is declining 1.5 percent.

Among the major exporters, Canon is losing more than 1 percent and Panasonic is slipping almost 2 , while Sony and Mitsubishi Electric are declining more than 4 percent each.

Among other major gainers, Renesas Electronics is plummeting more than 11 percent, Kawasaki Heavy Industries is plunging almost 8 percent and Hitachi is slipping more than 7 percent, while Recruit Holdings, Disco, Isetan Mitsukoshi and IHI are sliding more than 6 percent each. Mitsubishi Heavy Industries and Ebara are losing almost 6 percent each, while Mitsui Mining & Smelting is declining more than 5 percent. Tokio Marine and Japan Steel Works are down almost 5 percent each.

Conversely, Sapporo Holdings and Nitori Holdings are gaining almost 3 percent each.

In economic news, Services producer prices in Japan were up 3.0 percent on year in June, the Bank of Japan said on Thursday – accelerating from the upwardly revised 2.7 percent increase in May (originally 2.5 percent). On a monthly basis, producer prices were flat for a second straight month. Excluding international transportation, services producer prices were also flat on month and up 3.0 percent on year.

In the currency market, the U.S. dollar is trading in the higher 152 yen-range on Thursday.

Elsewhere in Asia, South Korea and Hong Kong are down 1.8 and 1.2 percent, respectively. New Zealand, China, Singapore, Malaysia and Indonesia are higher by between 0.3 and 0.8 percent each. Taiwan is bucking the trend and is up 2.8 percent.

On Wall Street, stocks showed a more substantial move to the downside during trading on Wednesday, after ending yesterday’s choppy trading session modestly lower. The tech-heavy Nasdaq showed a particularly steep drop on the day, tumbling to its lowest closing level in over a month.

The major averages saw further downside late in the session, closing near their worst levels of the day. The Nasdaq plunged 654.94 points or 3.6 percent to 17,342.41, the S&P 500 dove 128.61 points or 2.3 percent to 5,427.13 and the Dow slumped 504.22 points or 1.3 percent to 39,853.87

The major European markets also moved to the downside on the day. While the French CAC 40 Index tumbled by 1.1 percent, the German DAX Index slid by 0.9 percent and the U.K.’s FTSE 100 Index dipped by 0.2 percent.

Crude oil prices moved higher on Wednesday after data showed an unexpected drop in U.S. crude oil inventories last week. West Texas Intermediate Crude oil futures for September ended up $0.63 or 0.81 percent at $77.59 a barrel, snapping a three-day losing streak.

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